Will CGT be payable?

shauns_3

I purchased my present home in 1982.
In 1992 I purchased a second property which I occupied for six months before deciding to let it. I have since sold the second property claiming PPR and PL relief.
As my present home was not my PPR for six months in 1992 will there be a CGT liability if I now sell the property?

Penny_Rich

Technically those 6 months of non-PPR would be counted for CGT purposes. Basically you would calculate the gain on the sale of the property, and then pro-rata it to find the bit that would be chargeable to CGT. So if you had had the property for 10 years, say, you would have owned it for 120 months, and 6/120ths of the gain would be subject to CGT. However there is the annual allowance available to set against it - 2007/08 was £9200, can't recall this years allowance but it would be about £9,500 - which i would have thought would cover those 6 months worth of gain.